Deutsche Borse Group Set To Acquire The Remaining Shares At FundsDLT
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Deutsche Borse Group, one of the leading global market infrastructure providers, is set to acquire the remaining shares at FundsDLT. This acquisition will be closed by the fourth quarter of 2023 or the first quarter of 2024 if it gains regulatory approval.
Deutsche Borse Group acquires FundsDLT
The company based in Luxembourg is one of the largest decentralized platforms that rely on distributed ledger technology (DLT) to cater to end-to-end fund distribution and processing. The acquisition will be Deutsche Borse gaining more exposure to the DLT industry.
Deutsche Borse Group was among the institutions that developed FundsDLT. The group partnered with some of the largest financial institutions, such as Clearstream, the Luxembourg Stock Exchange, Credit Suisse Asset Management, and Natixis Investment Managers, to invest in and develop FundsDLT.
The growth of the FundsDLT platform can be attributed to Natixis Investment Management and Credit Suisse Management, which have contributed to the development of the FundsDLT platform.
Deutsche Borse Group is a key strategic partner and a minority shareholder at FundsDLT. The group has committed to pursuing digital strategy and technology across funds distribution and processing. The platform has also achieved significant growth and improved client efficiency and transparency.
The CEO of FundsDLT, Olivier Portenseigne, commented on the development saying, “Our goal is to enable fund distributors and asset managers, thanks to blockchain and fund tokenization, to simplify their business and operating model and roll out the technology foundation to enable their clients to connect to fund products anywhere, in an easier and in a more cost-effective manner.”
Portenseigne also said that becoming part of the Deutsche Group was a strategic step for the company as it would help drive growth. Clearstream was working towards boosting innovation and sharing in the vision, values, and commitment to the new market infrastructure.
FundsDLT taps blockchain to drive investments
The former shareholder at Credit Suisse Asset Management, UBS Asset Management, and Natixis Investment Managers are working together to foster the development of this use case and guarantee that financial institutions can tap different offerings.
FundsDLT has also proven the benefits of using a blockchain-based distribution model to support investment funds across different locations in Asia and Europe. The platform has secured a reputation as a leading platform enabling digital cross-border distribution.
Deutsche Borse’s acquisition of the outstanding shares owned by FundsDLT will be an integral part of the fund service by Clearstream. The move will see the technology adopted at a larger industrial scale while strengthening Clearstream’s fund processing and distribution offerings.
The CEO of Clearstream Fund Centre S.A., Philippe Seyll, commented on the development, saying that acquiring FundsDLT was a significant step forward in driving the company’s digital strategy. The executive also noted that the acquisition demonstrated the company’s position as a driver for innovation. As such, the platform would transform the entire distribution chain of this funding business.
